Sweeping Layoffs Loom As The Magic Kingdom Crowns A New Boss

Disney is reportedly planning to lay off up to 1,000 employees as the company undergoes restructuring following a leadership transition. 

The cuts are expected to be concentrated in Disney’s corporate and entertainment divisions and not affect its theme parks, where the majority of its roughly 230,000 employees work.

The layoffs were already underway before Josh D’Amaro assumed the CEO role and are part of a broader effort to streamline operations. The restructuring follows the appointment of Asad Ayaz as chief marketing and brand officer, according to an insider who spoke to The Wall Street Journal.

The House of Mouse has reduced its workforce significantly in recent years, cutting more than 8,000 jobs since 2022 as part of a cost-saving initiative aimed at reducing expenses by $7.5 billion.

The latest round of layoffs is reportedly part of an internal effort dubbed Project Imagine, which seeks to reduce costs and combine multiple departments, including employees from Disney+ and Hulu streaming services, into one team.

The changes come as Disney faces increased competition in the streaming and entertainment space from companies like Netflix and Amazon.

Separately, OpenAI recently announced it will shut down its Sora video app, a move that also disrupted a major $1 billion partnership with Disney tied to the technology.

The WSJ noted that Disney’s stock price is way down, currently trading at around the same level as a decade ago, and this move is likely an effort to shake things up and reduce overall costs. 

Layoffs have become increasingly common across the entertainment industry, with companies including Bad Robot, Sony Pictures, Paramount, and Warner Bros. Discovery all announcing cuts in recent months. Additional changes could follow if Warner Bros. Discovery moves forward with a potential sale. 

Disney did not respond to The Daily Wire’s request for comment.